Millions of taxpayers eagerly await their IRS refunds each year. But that anticipation can sometimes turn into despair and frustration when some tax refund checks vanish from mailboxes, stolen by opportunistic thieves.
What’s worse: recent reports indicate that refund theft is on the rise.
For instance, Rep. Nicole Malliotakis (R.NY) last fall pointed to more than 200 cases of stolen refund checks, amounting to $3.8 billion. The Wall Street Journal reported that one taxpayer was owed a refund of nearly $96,000 after selling his medical practice but never received the check.
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Once the taxpayer requested a replacement, that subsequent check was also reportedly stolen and fraudulently deposited.
These cases aren’t the first times the IRS has been defrauded out of millions in tax refunds. Here’s more of what you need to know and steps you can take to help protect yourself from becoming a victim.
Tax refund check theft on the rise
This past summer, two former postal workers were charged with stealing more than $4 million in U.S. Treasury checks at John F. Kennedy International Airport between June 2021 and August 2023. The checks included Social Security benefits, pandemic stimulus checks, and tax refunds.
In a separate case, the Office of Investigations for the United States Postal Service (USPS) found that more than $500,000 worth of tax refund checks were never delivered in a postal route in New Jersey.
The carriers admitted they had “been approached multiple times and offered cash to take IRS refund checks from the mail.” Leaders of the scheme ultimately defrauded the IRS of more than $10 million.
According to the IRS, 1 out of 8 taxpayers opt to have their checks delivered by mail — making them susceptible to potential fraud. Some criminals even follow postal service trucks and steal checks moments after they’ve been delivered to mailboxes.
Here are some steps you can take to get your money back if this unfortunately happens to you.
Stolen tax refund check: What to do
1: Check your refund status
You’ve filed your tax return and the waiting game begins.
The IRS typically issues most refunds in less than 21 days. However, you can check your refund status within 24 hours of e-filing a current-year return, three or four days after e-filing a prior-year return, or 4 weeks after filing a paper return.
You can check the refund status on your IRS online account, by accessing Where’s My Refund, or call the agency at 800-829-1954 to use the automated system.
If you’ve already taken the steps above and are still worried your refund is taking longer than expected to arrive, the IRS recommends you speak with an agent by calling 800-829-1040. Generally, you should call an IRS agent:
- E-filed return: 3 weeks after you filed it
- Paper return: 6 weeks after you mailed it
- Form 8379, Injured Spouse Allocation: 12 weeks for e-filed and 14 weeks for paper filing.
2: Initiate a refund trace
If you suspect your refund is missing or stolen, you can ask the IRS to issue a refund trace. This can be done by accessing Where’s My Refund, calling the IRS automated system, or customer service numbers mentioned above.
However, if you’re married and filed jointly, you won’t be able to initiate a refund trace through the automated system. If this is your case, you may be asked to complete Form 3911, Taxpayer Statement Regarding Refund, to initiate the trace.
What happens next depends on whether your refund was cashed out or not. For example:
- If your check wasn’t cashed, you should receive a replacement once the original check is canceled.
- If your refund was cashed, the Bureau of the Fiscal Service will provide a claim package with a copy of the cashed check. You’ll have to complete the claim package, which the BFS will review and determine whether they can issue a replacement check. This process can take up to six weeks to complete.
3: Check your address
If you opted to receive your tax refund via mail and it was never delivered to your address, make sure your address is correct. While this may not solve your problem if your check was stolen, it could be an overlooked error.
“I’ve had clients not receive their checks due to moving usually.” Rus Garofalo, president and founder at BrassTaxes.com told Kiplinger. “None of them were stolen that I’m aware of.”
You can update your address by calling the IRS directly at 1-800-829-1040, or by using several other methods, including:
|
IRS Form |
File a Form 8822, Change of Address or Form 8822-B, Change of Address or Responsibility for a Business. |
|
Written Statement |
Mail a signed written statement to the address where you filed your last return. Make sure to include your full name, old and new address, and Social Security number (SSN), ITIN, or EIN. |
|
Oral Notification |
Visit the IRS in person or notify the address change by telephone. |
If you joint return and are living with your spouse, both you and your spouse should provide your names, SSNs, new address, and signatures on the form or statement.
Likewise, if you filed jointly and now have separate residential addresses, each would notify the IRS of the new and individual addresses.
Also, if you are requesting an address change as an authorized representative, you must file the form or written statement with a copy of their power of attorney, Form 2848.
Why can’t you just put a forward address request on USPS?
While asking USPS may feel like you’re skipping some bureaucratic obstacles, it may not yield the expected results. According to the IRS, not all post offices will forward government checks or documents, so you’ll still have to deal with the IRS.
Your lost, stolen, or destroyed refund is from your state
If your missing tax refund is from a state program, such as a state child tax credit, you should report the case to your State Comptroller’s Office.
What’s next: IRS works on alternatives
Once you’ve decided to receive your tax refund via mail, the IRS doesn’t allow you to switch your delivery method to a direct deposit. The good news is that the agency is reportedly working on updating that option, but how soon that comes to fruition remains to be seen.
However, the safest and fastest way to get your refund is by filing electronically and selecting direct deposit.
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